Millard D. and Marjorie C. Thomas - Page 10

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               The evidence at trial clearly shows that petitioners have              
          admirably worked very hard, under difficult circumstances, to               
          support themselves and their family and to pay their taxes on               
          limited income due to Mr. Thomas’s disability.  However, given              
          the clear language of the applicable statutes, the Court                    
          concludes that Mr. Thomas’s disability pension benefits are                 
          taxable.  Accordingly, the Court sustains the deficiencies                  
          determined by respondent for the 2002 and 2003 taxable years.               
               In their brief, petitioners argued that if they were                   
          ultimately found liable for the deficiencies, then interest                 
          should be abated because respondent previously agreed with them,            
          at the time of the 1999 audit, that Mr. Thomas’s disability                 
          pension benefits were nontaxable.  Pursuant to section                      
          6404(e)(1), the Commissioner may abate part or all of an                    
          assessment of interest on any deficiency or payment of income               
          tax.  Abatement may be granted to the extent that any tax                   
          deficiency or delay in payment is attributable to unreasonable              
          erroneous or dilatory performance of a ministerial or managerial            
          act by an officer or employee of the IRS acting in his or her               
          official capacity.                                                          
               This Court lacks jurisdiction over petitioners’ abatement              
          request.  Generally, a taxpayer must first file with the                    
          Commissioner Form 843, Claim for Refund and Request for                     
          Abatement.  See sec. 301.6404-1(c), Proced. & Admin. Regs.  If              

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Last modified: November 10, 2007